...Profit vs. Non Profit Healthcare Organizations Prepared By: Milton Flores Table of Contents I. Introduction……………………………………………………………………………………………………………………………………3 II. Definition of Non Profit Health Care Organization………………………………………………………………………….4 III. Definition of Profit Health Care Organization…………………………………………………………………………………4 IV. Issues facing Non Profit and Profit Health Care Organizations……………………………………………………….5 V. Options to improve operations……………………………………………………………………………………………………….6 I. Introduction The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for profit hospitals and whether there is enough evidence data to support policies dictating ownership. Hospitals in the United States are the largest health care organization in this country. Private hospitals may either be classified as non-profit or for-profit institutions. The majority of the hospitals within the United States are non-profit. The main difference between non-profit and for-profit hospitals is the regulatory rules. Non-profit hospitals are not required to pay property, sales, or income tax. The reason that non-profit hospitals and other organizations were established was with the intention of servicing the needs of the poor. This is the reason that not-for-profit health care and hospitals are exempt from taxes, it was due to the...
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...Use Google search, the Devry-Keller Online Library, and/or one of the approved websites posted in the Webliography to find a research article(s) (no older than 2001) related to nonprofit versus for-profit healthcare and organizations. Analyze the characteristics of each type of organization and the factors that impact operations. Discuss options to improve the financial and operational performance of nonprofit organizations and the criticisms leveled at for-profit healthcare organizations. Define: characteristics a feature or quality belonging typically to a person, place, or thing and serving to identify it. Define: Analyze examine methodically and in detail the constitution or structure of (something, esp. information), typically for purposes of explanation and interpretation. Characterists: accepting patients community benefits monetary payments "More important, most doctors in a for-profit practice own that business and have complete decision-making autonomy. Doctors in nonprofit settings have no stake in the practice, and major decisions must be okayed by a board of directors." (school) "To be sure, the very nature of hospital payrolls means fewer benefits for physicians. Doctors in private practice can sock away as much as $30,000 annually in a tax-deferred SEP-IRA, or similar plan. But contributions to a nonprofit hospital's plan are capped at $10,000. That's because a private practice can skew its benefits to favor the high earners. In a hospital...
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...The U.S. Healthcare System Non-Profit Versus For-Profit The U. S. healthcare system is generally made up of two classifications. Hospitals may either be classified as non-profit or for-profit institutions. The majority of the hospitals within the United States are considered non-profit. The definition of a non-profit hospital is that its purpose is to serve the healthcare needs of the community. The reason that non-profit hospitals and other organizations were established was with the intention of servicing the needs of all communities. Over time there missions and values changed to have a primary focus on the indigent population. Most are/were well rooted in religion or were created by religious sponsors while others were formed by the humanitarians, nurses, and doctors. One of the distinct differences between non-profit and for-profit hospitals is the rules and regulations, particularly tax status. Non-profit hospitals are not required to pay property, sales, or income tax. It has been suggested that due to the fact the organizations were providing specific social services to the community, they were to be exempt from paying certain taxes. As of April 2012, non-profit hospitals had to begin to abide by four new mandates: * Community Health Needs Assessment * Must have written financial assistance and emergency medical care policy and procedures * Necessary medical care and emergency services must be at the minimum charge/cost. * Be in compliance...
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...delays” (Feeney, 2015). The purpose of this systematic approach was to change the establishments thought process and value, which would eventually lead to the conversion of the establishment culture and behavior over a period of time. It put emphasis on the consideration of the client’s needs, staff participation and constant enhancement. It may be used as a means of “identifying and eliminating “non-value add” actions and activities to decrease “waste” and afford enhanced organization performance and volume” (Feeney, 2015). For-Profit versus Non-Profit Organizations Will there be differences between how for-profit organizations (versus nonprofit organizations) are impacted? Lean thinking is all about providing the correct items to the correct location, at the correct time, in the exact numbers, while being flexible and open to change and minimizing waste. The key principle is to generate an increment of value with less waste as possible. Waste may consist of many forms to include deficiencies in manufacture, additional inventory and excessive processing. For profit organizations also known as “investor owned firms are owned by risk-based equity stakeholders who believe the supervisors of the corporation to capitalize on shareholder capital” (Cleverley, Song & Cleverley, 2011). They are created for the well-being...
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...Shriners Hospital Healthcare Delivery System Imagine a child experiences a traumatic event such as a house fire sustaining life-threatening injuries or develops a musculoskeletal disorder and may not walk again. Where would one go with a child such as this? A child that would need an individualized care plan catered to meet his or her needs without financially crippling their family and incorporating them in the healing process. A place of such magnitude and offers multidisciplinary services does exist and that place is Shriners Hospital for Children. Shriners Hospital, founded in 1922, aims to achieve optimum health for its patients by helping each child become healthy and independent. Through its broad range of medical and rehabilitative services, it accomplishes this goal through treatments, surgeries, and therapies in orthotics, prosthetics, occupational, and recreational. To deliver exceptional care, its healthcare delivery structure and the many factors that affect it contributes to its weaknesses and strengths as a non-profit healthcare provider. The following addresses Shriners Hospital healthcare delivery system, the economic, licensing, and regulating factors, trends affecting the industry, and pricing dynamics it encounters. Health Care Delivery Structure Health care delivery structure is the system through which a healthcare organization provides health care services that met the heath needs of the targeted population. The healthcare delivery structure...
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...ASSIGNMENT: 3 ORGANIZATION OF A HEALTH CARE FACILITY HEALTH CARE POLICY LAW AND ETHICS AUGUST 10TH. 2013 Your reputation as a renowned administrator to successfully lead mergers and acquisitions of hospitals precedes you, and you have been hired to create and open a new specialty health care business. This is a clinic with physicians who specialize in the following areas: dermatology, gynecology, heart disease, respiratory disease, surgery, and gastroenterology. It is located in an exclusive neighborhood. 1. Determine whether you would incorporate and state the advantages and disadvantages of doing so. The first order of business is to analyze the demographics of the neighborhood and its residents. Incorporating so many specialties in an exclusive neighborhood can bring about several challenges such as an influx of a variety of individuals from all walks of life. In addition, there could be a traffic nightmare with having so many specialties in a neighborhood such as women with children, old and young adults. The advantages of incorporating multiple specialties in a new clinic would be financially rewarding for the owners. The reason for the financial rewards would be that if one specialty does not do well, then the other would offset any deficits incurred. Another advantage of group practice from the perspective of the provider include shared operation of the practice, joint ownership of facilities and equipment, centralized administrative...
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...University of Phoenix HCS/577 Charlotte Igo July 30, 2012 The Health care financial environment is the most common for- profit, not-for-profit, and also the government funding. In this paper, it will be identified that one entity of these health care financial environments. Also it will describe the financial structure of the financial environment. Along with identifying the policies unique to each of the financial environment, and also to identify the financial management practices prevalent in the financial environment. Then it will be explained why the effective financial management is more difficult in health care than in other industries. First we will talk about is the Health Management Associates, Inc. that was founded in 1977. The Health Management Associates was founded to own, also leased and then managed the hospitals throughout the United States. As of the HMA, they operate about fifty nine hospitals in fifteen states with approximately eighty eight hundred licensed beds. Company employs around thirty two thousands associates and hosts a total medical staff of approximately eight thousands physicians. HMA is a for profit organization, with that the profit organization is with the three key features of investor-owned corporations. The owners aka known as the stockholders of the business are well defined and they exercise control of the firm by voting for directors. The residual...
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...The financial structures of health care entities non-profit, for-profit and government are different with funding, ownership, and type of services rendered. Financial managers, financial markets, and investors are the essential components that make up the financial world within a healthcare organization. Financial managers basically rely on investors to supply money through the financial markets when determining whether to use debt or use equity financing. To understand the full benefit of the financial resources, it is important to understand the overall financial structure. In other words how it is set up. In this paper, I will try to compare the financial environment of for-profit Pruitt Health Clinic, not-for-profit Phoebe Memorial Hospital, and VA Clinics. (to the best of my ability) In the health care sector entities regardless of their status (for-profit, not-for-profit, or government owned) should have the same common goal of providing quality healthcare to the residents of its community. Health care organizations are very different compared to other business when it comes to finances. The financial structure is described as the way funds are financed and the balance sheet shows what the organization looks like at a particular point in time. For example Phoebe Putney Memorial Hospital will compare fiscal year to another fiscal year to decide what needs to stay, go or be “tweaked”. Some organizations have a method to reading the spread sheet as well. PPMH for...
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...The Efficiency of the Healthcare Service Abstract This paper will evaluate the strengths and weaknesses of four healthcare organizations. It will describe the services provided by each. The Efficiency of the Healthcare Service Few industries in the world have a higher need than healthcare. Healthcare is quickly becoming the fastest growing capital expenditure. As the population ages, so does the demand and need for healthcare services. This growth translates into ample job opportunities. A career in healthcare management presents professionals with a thriving, growing and the moral gratification of maintaining their communities. There are several types of healthcare organizations. With so many branches to the healthcare field, how does one assess the facility with the right fit? Every healthcare organization has strengths and weaknesses. Healthcare facilities are divided into two categories; proprietary and non-profit. A healthcare facility is structured by the clinicians and the administrators. I chose my community of Kennesaw, GA to highlight the health services needed and being provided. Kennesaw is located about 20 miles northwest of Atlanta with a population of 32,000 estimated by the US. Census Bureau. Currently the median age group is 31. In this paper, I pick out four healthcare organizations, define their strengths and weaknesses, and show their political/economic value. A doctor’s office...
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...Northeast Health Council, INC was established in 1993 to meet the primary healthcare needs of the residents of the Northeast through a not-for-profit community-responsible approach. A nonprofit analysis helps nonprofit executives and board members understand their organization’s underlying fiscal health and readiness for change and growth. The analysis is a critical tool for Northeast Health Council planning for program expansion, organizational restructuring and/or realignment, financial and fundraising challenges, new executive and board leadership, a new capital project, or acquisition or merger with another nonprofit organization (such as the local health clinic). The Northeast Health Council’s analysis helps its executives and board members to understand the underlying financial trends and characteristics of their organization, including revenue composition and growth, expense composition and trends, balance sheet composition, and key ratios. It helps to assess the alignment of the organization’s current financial structure with change; predict the impact of proposed changes on the organization’s future growth, sustainability, and survival; Use financial planning and management tools, such as annual/monthly cash flow projections, budgets of revenue and expenditures versus actual reports, to inform strategic decision making; establish benchmarks for program productivity, financial performance and organization-wide fiscal health. Additionally, the analysis is a powerful tool...
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...Abstract Management control systems are tools to aid management for steering an organization toward its strategic objectives and competitive advantage. Management controls are only one of the tools which managers use in implementing desired strategies. However strategies get implemented through management controls, organizational structure, human resources management and culture. In this paper we will discuss how management control system is implemented in various sectors of an pharmaceutical company ie. “GlaxoSmithKline Bangladesh Limited”. GlaxoSmithKline Bangladesh Limited carries with it an enviable image and reputation for the past 6 decades. A subsidiary of GlaxoSmithKline (GSK) is one of the world’s largest research-based pharmaceutical and healthcare companies GSK Bangladesh, continues to be committed to improving the quality of human life by enabling people to do more, feel better and live longer. The Company’s principle activities include secondary manufacture of pharmaceutical products and marketing of vaccines, pharmaceutical and healthcare products. GlaxoSmithKline Bangladesh Limited implements many control systems to attain their strategic objectives and competitive advantages. Some models that GlaxoSmithKline uses to make their activities and resources effective & efficient, for their employee performance evaluation and to enhance the overall performance of the organization will be discussed in this paper. Management Control Systems 1.1 Introduction: ...
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...Financial Management of Health Care Organizations Latasha Rowell August 4, 2015 HCS/405 Conway Brew Financial Management In any business, financial managers should ensure that financial reporting practices and ethical standards are being met as well as maintained. These practices are vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed. Summary of the Four Elements of Financial Management There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time...
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...difference between marketing in the Business and Healthcare industry by discussing the key aspects and impacts of the external environment with each industry. I will develop and address the issues presented by customers want and needs in aspect of the healthcare professional and debate the need for marketing in the hospitals versus clinics. As a healthcare provider of a clinic, explanation will be given to differentiate the advantages of my clinic of choice versus other clinics. Marketing and business development in the business industry are processes of cultivating ongoing relationships that lead to deep trust and long-term value-exchange between the business and their stakeholders to develop and maintain purpose-based relationships. Marketing is all about putting customers/patients at the heart of the business and responding to their needs and wants toward implementing a mission and goal. In a challenging economic climate, the customer needs to trust that the product offers something unique in terms of style, quality and sustainability - these all derive from strategic planning. Business ethics can be powerful marketing tool and should form a key part of your marketing strategy when combined with the quality and style of the product. Dell Computer is a great example of bold and daring marketing that has endured. When the computer industry was employing nothing but conventional wisdom and selling through complicated and profit-draining distribution channels, the question was...
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...to: Distinguish between business and not-for-profit organization. Describe why do we study business? Explain Survival, profit, growth, and increasing shareholder value. Describe what are the different types of stakeholders? Explain what are the major resources used in a business? How do they impact business? Explain all business decisions and their functions. State what are the indicators of measuring business performance and how to measure those? Describe what role a business does play to develop economy of a country? Define social business with its 7 principles. 2 5/9/2015 GREEN BUSINESS Minimize ‘carbon footprint’. 3 5/9/2015 BUSINESS Concept of Business: Business is an organization that produces or sells goods or services to gain profit. For example, SQUARE Pharmaceutical, KDS Garment, Fresh Cement and City Bank Ltd. Activities of Business: 1. It must be organized 2. It must satisfy needs 3. It must earn a profit. 4 5/9/2015 1. IT MUST BE ORGANIZED Must include four types of resources: - Materials - Human - Financial - Informational For example, SQUARE Pharmaceuticals Ltd. needs chemical and other raw materials to produce medicine it sells in the market. In addition, this company also needs human, financial, and informational resources. 5 5/9/2015 2. IT MUST SATISFY NEEDS Singer vs. Walton 6 5/9/2015 3. IT MUST EARN A PROFIT Profit = Sales Revenue – Expenses It is also known as...
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...Marr, B. (2012). Advanced Performance Institute. Retrieved October 18, 2012, from What is a Balanced Scorecard?: http://www.ap-institute.com/Balanced%20Scorecard.html Samet, K., Rider, H., & Weiss Wilkerson, J. (n.d.). Understanding Healthcare Organizations: External Infleunces. Week 7 Bayat, R. F. (2011). Impact on the Productivity of Human Resources Management, Performance Evaluation. Australian Journal Of Basic & Applied Sciences, 5(12), 1629-1635. Smith, K., Gunzenhauser, J., & Fielding, J. (2010). Reinvigorating Performance Evaluation: First Steps in a Local Health Department. Public Health Nursing, 27(5), 425-432. doi:10.1111/j.1525-1446.2010.00875.x Ver Ploeg, M., & Ralston, K. (2008, March). Food Stamps and Obesity:What do we know? Retrieved September 14, 2012, from United States Department of Agriculture: http://www.ers.usda.gov/publications/eib-economic-information-bulletin/eib34.aspx Riskind, A. G., & Lohr, A. (2012). New Scientific Study Indicates that Eating Quickly is Associated with Overeating. Retrieved September 15, 2012, from Obesity in America.org: http://www.obesityinamerica.org/newsroom/Fasteating.cfm Sikorski, C., Luppa, M., Kaiser, M., Glaesmer, H., Schomerus, G., König, H., & Riedel-Heller, S. (2011). The stigma of obesity in the general public and its implications for public health - a systematic review. BMC Public Health, 11(1), 661-661. doi: 10.1186/1471-2458-11-661 Odgen, C. L., Carroll, M. D., Kit, B....
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